JNK alternatives and similar ETFs

JNK alternatives at a glance#

Each fund below can stand in for JNK, closest first. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How JNK and its alternatives did over the same dates#

Each row measures the alternative and JNK on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each JNK alternative, compared#

USHY: iShares Broad USD High Yield Corporate Bond ETF#

USHY also holds bonds from US companies with weaker credit, which pay more interest and carry more risk. It tracks the ICE BofA US High Yield Constrained Index, while JNK tracks the Bloomberg High Yield Very Liquid Index.

It charges 0.08% a year, about $8 on $10,000, against $40 for JNK. It held 1,902 holdings, against 1,161 for JNK.

From October 2017 to October 2026, USHY returned about 4.4% a year and JNK returned about 3.8% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the USHY fund page for its returns by year and worst drop.

HYG: iShares iBoxx $ High Yield Corporate Bond ETF#

HYG also holds bonds from US companies with weaker credit, which pay more interest and carry more risk. It tracks the iBoxx USD Liquid High Yield Index, while JNK tracks the Bloomberg High Yield Very Liquid Index.

It charges 0.49% a year, about $49 on $10,000, against $40 for JNK. It held 1,334 holdings, against 1,161 for JNK.

From December 2007 to October 2026, HYG returned about 4.8% a year and JNK returned about 4.8% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the HYG fund page for its returns by year and worst drop.

VCIT: Vanguard Intermediate-Term Corporate Bond ETF#

VCIT is a looser match. It holds bonds from large US companies with strong credit ratings, while JNK holds bonds from US companies with weaker credit, which pay more interest and carry more risk.

It charges 0.03% a year, about $3 on $10,000, against $40 for JNK. It held 2,342 holdings, against 1,161 for JNK.

From November 2009 to October 2026, VCIT returned about 4.0% a year and JNK returned about 5.3% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the VCIT fund page for its returns by year and worst drop.

LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF#

LQD is a looser match. It holds bonds from large US companies with strong credit ratings, while JNK holds bonds from US companies with weaker credit, which pay more interest and carry more risk.

It charges 0.14% a year, about $14 on $10,000, against $40 for JNK. It held 3,171 holdings, against 1,161 for JNK.

From December 2007 to October 2026, LQD returned about 3.8% a year and JNK returned about 4.8% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the LQD fund page for its returns by year and worst drop.

JNK versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to JNK from each other company on this page:

• iShares (BlackRock): USHY, iShares Broad USD High Yield Corporate Bond ETF (same kind of fund, 0.08% a year)
• Vanguard: VCIT, Vanguard Intermediate-Term Corporate Bond ETF (related fund, 0.03% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between JNK and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, JNK costs about $40 a year. VCIT costs about $3.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping JNK to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as USHY, HYG or VCIT, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test JNK and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add JNK and USHY, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as JNK. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like JNK over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with JNK only on days both traded. Read what a backtest simulates for more on these measures.